Civeo Wins Conditional Housing Contracts for LNG Canada Pipeline

Houston-based Civeo said July 5 it had been awarded conditional contracts to supply workforce accommodations at four locations along the route of the Coastal GasLink Pipeline project, which will supply Anglo-Dutch Shell’s LNG Canada export terminal in Kitimat, BC.

The contracts, valued at about C$100mn (US$76.4mn) over a three-year term between 2019 and 2021, will collectively provide accommodations for more than 2,000 workers. Final execution of the contracts is dependent on Shell and its partners taking a positive final investment decision (FID) on the C$40bn LNG Canada project.

In a July 8 research note, Calgary-based Stream Asset Financial Management predicted FID on LNG Canada could come as early as July 26, when Shell will release its 2Q results. Barring that, it has long-suggested the decision could be announced in the second or third week of September, basing its prediction on the large number of conditional contracts awarded in recent weeks related to Coastal GasLink.

Coastal GasLink will extend some 670 km from the Dawson Creek area in northeast BC to Kitimat. Civeo will partner with a First Nation for each of the four facilities, drawing on its network of leading First Nation and community partnerships.

“The strength of our First Nation relationships was critical to these awards, and we look forward to collaborating with our partners to provide best-in-class accommodations along the Coastal GasLink pipeline project,” Civeo CEO Bradley Dodson said. “Along with our recent acquisition of Noralta Lodge, this contract is a testament to our continued growing presence across Canada.”